Rooftop solar three times cheaper to install in Australia than US, Canada

A new study has found the cost of installing rooftop solar is dramatically lower in Australia than the US and Canada, with even Australia’s most expensive state for installation, Tasmania ($1.08/W), almost $2 cheaper per watt than the cheapest state in North America.

The study from Compare the Market finds the average residential solar installation cost in the US is $A4/W, while Canada’s national average was $A3.65/W. By contrast, Australia’s national average was $A0.89/W, more than $A2/W cheaper.

“Solar energy is simply cheaper to produce than relying on the volatile price of coal and gas, plus rising network infrastructure costs such as poles and wires,” says Compare the Market head of energy Meredith O’Brien.

O’Brien says the energy bill savings achieved through rooftop solar – and the low costs of installation in Australia as compared with other countries – should be encouraging for consumers looking to make the switch.

“One of the biggest deterrents to solar power is the upfront costs required for installation, but depending on the size of the unit you choose, the savings can outweigh the cost quickly.”

Victoria, New South Wales and Queensland took the middle spots at $0.89/w, $0.87/W and $0.85/W respectively, while South Australia took the winning spot at just $0.80/W, a massive $3.61/W difference.

South Australia has some of the highest rooftop solar penetration rates in the world, with more than 40% of households sporting solar panels.

That high demand has driven competition in the installation market, driving prices down for consumers. 

The South Australian government has over the years introduced several schemes and rebates to incentivise rooftop solar uptake, including a huge VPP program. 

Past customers also benefited from the South Australia Home Battery Scheme, which closed in 2022 but which offered up to $3,000 in rebates, as well as the Tesla-South Australia Virtual Power Plant (VPP) Pilot, which ran from 2018-2021.

While Canada’s cheapest solar installation costs, in Ontario, were lower than in the US – $A3.04/W in Ontario versus $A3.58/W in Georgia – its most expensive state, Newfoundland and Labrador/Nunavut was at least 40c more expensive per watt than the most expensive state in the US, Massachusetts – likely due to accessibility issues and logistic constraints in the relatively cold and remote corner of the country.

Of course, Australia, as a relatively sun-drenched country (certainly compared with Canada), is better placed to benefit from the revolution in rooftop solar, with more customers clued in on the technology, and more local companies with the knowledge and skills to install.